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Better Than Equity Crowdfunding
People are very excited about the new equity crowdfunding rules. Now small ventures do not have to chase venture capitalists for seed money.
There are some limits to what you can do with the new equity crowdfunding rules. You can only raise $1 million. Lower income investors are limited to investing $2,000 per year or 5% of their income or net worth. Even a very wealthy investor can only invest $100,000 in all the crowdfunding deals he does in one year. The new equity crowdfunding rules limit public advertising. Offering details can only be on one crowdfunding platform. Equity crowdfunding offerings must be made through one registered crowdfunding portal or a broker-dealer. In some circumstances you have to have financial statements reviewed or audited by a CPA. You need to pay for a registered transfer agent to record stock ownership and transfer. You must pay EDGAR filing fees to file the offering with SEC. You have to pay the crowdfunding portal or broker.
How surprised would you be to discover there is another way to raise more equity for your venture?
With Reg D Rule 504 you can raise $1 million and that will soon go up to $5 million.
If you structure the offering right, there are no federal limits on advertising, only state limits.
You are not limited to advertising on one funding portal.
There are no specific federal rules on the required information you must offer.
Audited or CPA reviewed financial statements are not required.
While there is no specific information you must give investors, full disclosure is highly recommended.
Unlike equity crowdfunding, there are no ongoing disclosure requirements.
There are no EDGAR or transfer agent fees.
In fact, in the right circumstances you can do both a crowdfunding offering and a Reg D offering for even more money.
Look into Reg D, Rule 504 by getting our special report by emailing John.Lux@ Securities-Law.info
Put “Reg D Report” in subject line
I look forward to talking with you.
Questions – email me at John.Lux@ Securities-Law.info
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